Connexion Junction 7

Responding to extraordinary demand, Facebook said Wednesday that it would sell more stock in the company’s initial public offering. But ahead of the IPO, a debate emerged between two of the nation’s largest automakers: Does it pay to advertise on the social network? General Motors, the nation’s largest automaker, said it would abandon Facebook ads after concluding they were ineffective. At the same time, Ford reaffirmed its commitment to Facebook, saying their relationship was stronger than ever. The direct financial impact of GM’s move is minimal for Facebook, but the decision drew attention to the network’s advertising system, which some observers regard as immature. In a regulatory filing Wednesday, Facebook said it would add 84 million shares, worth up to $3.2 billion, to the IPO, which is shaping up to be the decade’s hottest. The company’s stock is expected to begin trading Friday on the Nasdaq Stock Market under the ticker symbol “FB”. Almost half of the additional shares come from investment firms DST Global and Tiger Global. Goldman Sachs is doubling the number of shares it is selling. Facebook board members Peter Thiel and James Breyer are also selling more shares. Since all of the additional shares come from insiders and early investors, the company won’t benefit from their sale. “It certainly does raise the question: How much higher could the stock go if institutions who know the company well think this is a good price to sell?” said Daniel Ernst, an analyst with Hudson Square Research. On the other hand, he said, investment firms only make money by selling their stakes, and they have bills to pay. So the fact that they are selling more is only a limited indication of their confidence in the company. The news comes a day after Facebook raised the expected price of the stock to a range of $34 to…

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The phrase “Can you hear me now” has entered the jet age. Passengers on certain Virgin Atlantic flights are now able to use their cell phones to make and receive phone calls at 35,000 feet, the airline announced Tuesday. The British airline’s new service could be a blessing for business travelers who want to stay connected during eight-hour flights across the ocean. It could also be a nightmare for the passenger sitting next to them. “I suspect most passengers, like myself, would prefer not to listen to somebody on the phone for what might be hours,” said airline analyst Robert Mann. Only six passengers at a time will be able to use the system, which the airline says is intended “for use in exceptional situations.” Passengers will be able to send text messages, make a call or access email on mobile devices. The airline won’t charge extra for the service but cell phone users will be charged their carrier’s international roaming rates. Initially, the service — which utilizes a satellite connection — will only be available for customers of European cell phone providers O2 and Vodafone and U.S. carrier T-Mobile. The service debuted Tuesday on the airline’s new Airbus A330-300 planes flying between New York and London. It will expand to nearly 20 planes by year-end, from a handful now. Dubai-based Emirates became the first carrier to allow passengers to use their personal cell phones back in 2008. A handful of other airlines in the Middle East including Oman Air and Royal Jordanian now have similar services. Passengers today already wrestle for control of the armrest and the few precious inches of personal space they have. It isn’t clear how the flying public will react to phone calls mid-flight. George Hobica, founder of AirfareWatchdog, says Virgin will have to restrict times of day when passengers can make calls…

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